Ethereum prices could fall below $ 1K if these key prices become bearish

Ethereum prices could fall below $ 1K if these key prices become bearish – Mail Bonus

Ether (ETH) prices have fallen by 37.5% in the last seven days and recent news reports that developers have decided to postpone the transfer of the network to a consensus on proof of share (PoS). This update is expected to put an end to the non-dependency on mining proof (PoW) mining and merger flexibility solution that has been practiced for the past six years.

Competitive smart contracts such as BNB, Cardano (ADA) and Solana (SOL) outperformed Ether by 13% to 17% since June 8, even though the cryptocurrency market has corrected. This suggests that the issue of the Ethereum network has also weighed on the ETH price.

The “difficulty bomb” was added to the code in 2016 when plans for the new solidarity system (formerly Eth2) were being formulated. At the peak of the so-called “DeFi summer”, Ethereum’s average transaction cost exceeded $ 65, which was frustrating for even the most avid user. This is precisely why the merger plays such an important role in the eyes of investors and consequently Ether prices.

Option traders are still very risk averse

Traders should look at Ether data on derivatives markets to understand the position of whales and market makers. The 25% delta error is a telling sign every time professional traders charge too much for upside down or down protection.

If traders were expecting the collapse of Ether prices, the error indicator would exceed 10%. On the other hand, the general voltage reflects a negative 10% error. This is precisely why the measure is known as the measure of fear and greed of professional traders.

Ether 30 day options 25% delta error: Source: Laevitas.ch

The error rate improved on June 16, at least briefly, to 19%. However, as soon as it became clear that it would take longer than expected to climb above the $ 1,200 resistance, the error rate returned to 24%. The higher the index, the less inclined traders are to price declining risk.

Data from long to short show that traders are not interested in shorts

The long to short net share of top traders excludes external effects that could only affect the options market. By analyzing these positions on the spot, perpetual and quarterly futures, it is possible to better understand whether professional traders are inclined to bullish or bearish.

There is an occasional methodological discrepancy between different exchanges, so viewers should watch for changes instead of absolute numbers.

Major stock exchanges Ether long-term short-term. Source: Coinglass

Even though Ether failed to maintain the $ 1,200 support, professionals did not change their position between June 14 and 16, according to the long-term short-term indicator.

Binance showed a modest increase in the long to short ratio, as the indicator moved from 1.11 to 1.22 in two days. Thus, these traders only raised their bullish bets.

Huobi data show a steady pattern as the long to short indicator remained close to 1.00 all the time. Finally, on the OKX exchange, the measured value fluctuated significantly during the period but ended almost unchanged at 1.04.

Hope for the best but prepare for the worst

Overall, there has been no significant change in the future position of whales and market makers, despite Ether falling to $ 1,012 on June 15. However, stock options buyers fear that a fall below $ 1,000 is still possible, but negative news flows have a major impact on prices.

If these whales and market makers had any indication that there could be a deeper price correction, this would have been reflected in the long-term short-term share of the stock exchanges.

As the saying goes, “follow their actions, not their words,” which means traders should be prepared for a sub- $ 1,000 ether, but not as a basic scenario.

The views and opinions expressed herein are theirs alone author and do not necessarily reflect the views of Cointelegraph. Every investment and business involves risk. You should do your own research when making a decision.